After shopping-centric Black Friday and Cyber Monday, it’s refreshing to know that today is Giving Tuesday. Giving Tuesday is actually a relatively new effort – the first one was in 2012 and it is actually part of November’s nonprofit awareness month. But giving in the US is not new at all. In fact, the US is one of the most generous countries on earth. Here are some of the facts… Read More
When Mitt Romney ran for President in 2012, he was required to disclose information about his net worth, which was around $250 million. The most interesting element to me, though, was that he had more than $100 million in his IRA. IRAs are an important element of our clients IRAs and some have large balances, but nothing, obviously, like Romney’s. I don’t begrudge Romney and have no interest in getting… Read More
One of the most difficult questions that I get is whether or not people should buy long-term care insurance (LTC). My views have changed over time and are likely to continue to evolve and I don’t claim to be an expert in this field. Historically, I thought that the policies were too expensive and often passed on the rule of thumb that I had heard, which has three parts. If… Read More
There are many reasons to establish trusts including the efficient transfer of wealth, avoiding probate, philanthropic commitments, tax reduction, or protecting assets, among other things. Ten years ago, the tax reduction benefits were applicable to more people because the estate tax exemption (the threshold where estate taxes kick in) was $1.5 million. Today, the exemption is $5.34 million and, therefore, affects far fewer people. That doesn’t mean that you don’t… Read More
Last year, Fidelity Investments did a study called the College Savings Indicator to measure how families deal with college costs. They found that 26 percent of parents will pay for all college costs, four percent will not pay for any college costs and the remaining 70 percent plan on paying a portion of college costs. In short, college is still a high priority. On average, these families expect to pay… Read More
In our retirement planning model, the Acropolis Financial Forecaster, there are essentially five key variables that affect the probability of meeting your goals. They are as follows: Saving Before Retirement When to Retire Spending in Retirement Market Returns & Inflation Rate Portfolio Risk The first three factors are entirely under your control and the second one is the most critical because the timing of your retirement stops contributions to your… Read More
One evening, years ago, I was fiddling around with a life expectancy calculator online and after running the numbers on myself, I decided to run through the program for my wife. Her problem was very different than mine (I’m on borrowed time already). According to this calculator, her life expectancy was 116! It made sense, there is a lot of longevity in her family and she doesn’t chain smoke or… Read More
The Supreme Court unanimously ruled in June that inherited IRAs are not protected in bankruptcy. Since Individual Retirement Accounts (IRAs) were first created in 1974, they have been terrific savings vehicles. Contributions to traditional IRAs are tax-deductible and the assets grow on a tax-deferred basis until you draw the money out, as early as age 59 ½. If you haven’t started pulling money out by 70 ½, the government requires… Read More
I am frequently asked whether you should pay off your mortgage prior to retiring. The calculus is a little trickier today than it was five or ten years ago because interest rates are so low now. According to 2011 data from the Consumer Financial Protection Bureau, 81 percent of Americans age 65 and older own a home and 30 percent of those homeowners still carry a mortgage. Ten years earlier,… Read More
For the better part of this past week, I was out of the office at family camp in Minocqua Wisconsin. I really tried to avoid my phone and the emails and news that goes with it. As a result, I had no idea that while I was enjoying the world-famous Min-aqua-bat trick water ski team (photos here), the St. Louis suburb of Ferguson was burning after the shooting of Michael… Read More
